The closing process
A) Is done each time a transaction takes place and is journalized.
B) Transfers all income statement items to their related statement of financial position account (for example, salaries/wages expense transfers to salaries/wages payable).
C) Posts all closing entries to the appropriate general ledger account.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

The closing process involves posting all closing entries to the appropriate general ledger accounts to reset the balances of temporary accounts (revenues, expenses, and dividends) to zero for the next accounting period. This process does not occur with each transaction nor does it involve transferring income statement items directly to their related statement of financial position accounts as described in option B.

The Closing Process